Published Jun 02, 2026 | Forbes

After capital and cash flow management, the professional development of a business and its leadership is one of the most critical factors to successfully growing a company. According to mega-best-selling author Michael Gerber, “Most entrepreneurs fail because they are working in their business rather than on their business.” Because these business owners are often consumed by day-to-day operations, addressing issues that appear to be endless and feel urgent, they neglect the professional development of their business, employees and themselves.

The result is often a failure to grow and scale the business to the point where it can create real wealth for the entrepreneur. Small businesses fail at an astonishing rate. Over one-fifth of new small businesses fail within their first year, and half have closed by their fifth anniversary. Of those businesses that remain open, the vast majority are solo entrepreneurs – meaning that they have not been able to grow and add employees beyond the founder.

Businesses that succeed over the long haul are those whose leadership understands the importance of investing in their own professional development, as well as that of their employees. Here are four ways business owners can continue evolving professionally and find pathways to growth for their companies.

1. The Distinct Advantages Of Peer-to-Peer Learning

One of the most effective ways entrepreneurs can grow their businesses is through peer-to-peer support and learning. Meeting regularly with fellow business owners who face similar challenges, risks, and decisions, and sharing from real experience (not just opinion or conjecture), can provide practical insights that cannot be replicated in other learning environments. This experience-based sharing environment reinforces the fact that we are not alone, despite feeling that way.

Networking groups such as Vistage and Entrepreneur’s Organization (EO) offer structured learning and support for business owners. And there are almost always community-based networking events hosted by organizations supporting local entrepreneurs. These networking groups create space for real-world conversations around cash flow and funding, employment/HR challenges and best practices, economic and societal shifts, innovation and technology, and personal and professional challenges.

All it takes is one good idea to make joining a professional peer group or network, or attending a training session, worthwhile.

2. Get A Mentor And Form Your Own Board Of Directors

Business owners need mentors and coaches. Even better, if you haven’t done so already, form a Board of Directors (or Advisors) for your company. Look to your personal network to identify individuals with experiences, connections, and perspectives that will broaden your own access and perspectives. Beyond your personal network, there are also resources for identifying seasoned business leaders interested in volunteering to mentor directly or through a Board, including SCORE, the Small Business Development Center (SBDC), MicroMentor and other organizations operating in local communities.

According to SCORE, entrepreneurs who work with a mentor are five times more likely to start a business and report higher revenues and business growth. The right mentor or advisor can help business owners avoid costly mistakes, uncover new opportunities, and accelerate growth.

Establishing and leveraging a network of these types of professional advisors reinforces the importance of remaining open to input, admitting when you’re wrong, and learning. It also takes the burden off family members, spouses, and partners who may not be able to fully relate to the rigors associated with owning a business and managing people.

3. Treat Your Employees As The Valuable Company Assets They Are

Talent, empowered through culture and enabled by technology, is a company’s primary long-term competitive advantage. Everything else, from products and services to distribution and pricing, can be offered by the competition. Even the smartest business strategy is useless without the right talent to execute it.

Hiring, developing, and retaining talent enables the growth of a business beyond the bandwidth of the founder. But many small businesses find it challenging to attract the right talent and experience very high employee turnover. Entrepreneurs need to develop into leaders that understand how to attract, develop, motivate, and retain their teams.

LinkedIn’s 2025 Workplace Learning Report found that helping employees develop their careers is the #1 way organizations are trying to improve retention, emphasizing the growing importance of professional development in today’s world.

Companies such as Costco have demonstrated the value of investing in employees through a long-standing commitment to career growth and internal promotion. According to Costco, 87% of its general managers are promoted from within the company, creating a culture where employees can advance and have long-term success.

Start by putting yourself in your employees’ shoes and creating a compelling value proposition that combines compensation, development, and culture. Make the connection between the company’s success and their individual success. The team continuity that comes from this exercise can drive growth well beyond what can be achieved in the solo entrepreneur model.

4. Optimize Your Business Through An AI Lens

Technology, particularly AI, is quickly affecting how companies operate and compete. Business owners must invest time in understanding how AI and automation impact their business, where tech can improve outcomes through both enhanced revenue generation and cost efficiencies, and what tools to invest time and money in.

For many entrepreneurs, time is the most valuable resource they have and utilizing AI can give some of that time back. In a six-month experiment involving more than 7,000 workers across 66 organizations, researchers from Microsoft Research and Harvard Business School found that employees using a generative AI tool spent approximately two fewer hours on email each week and reduced the amount of work completed outside regular business hours. For entrepreneurs and small business owners, that reclaimed time can be redirected toward customer relationships, strategic planning, business development, and other activities that drive growth.

A helpful exercise is to turn the traditional approach to the adoption of technology upside down. Instead of trying to identify where technology and AI can be used to improve your business, assume everything can be enhance or replaced by these tools, and identify the few areas where you want your team deployed – those areas where your human talent can be most impactful to customer experiences and business outcomes. For everything else, develop an AI (or human assisted AI) solution. You can even use AI to help you with this by asking it to develop an operating model with a transition plan!

In addition, entrepreneurs should learn the benefits and risks associated with adopting new technologies and advancing the use of AI and then establish guidelines for employees. Teams look to leadership to set the tone for how technology is used. Without that direction, employees may misuse tools, underutilize them, or create inefficiencies or issues that impact performance or shut down a small business for days, weeks, or even months.

There’s No Better Time To Invest In Leadership Training

When business owners prioritize professional development, they lead by example and set the tone for their entire organization. It’s a great way to model for your employees and encourage them to step up and evolve as professionals and people.

Effective leaders also understand that their greatest impact often comes through the growth and success of the people around them. The result is stronger leadership, more engaged teams, and a business prepared to navigate change, build trust, and grow.